...Logistics Cost Management of Enterprises Abstract: In the context of global economic integration , along with the development of international trade in full swing , the international logistics industry has been rapid development . But overall, the logistics industry is still much room for development, logistics costs in corporate expenses and the country's GDP composition plays an important role in both . This clearly illustrates the composition of enterprise logistics cost , briefed the logistics management theories and factors affecting the cost of logistics enterprises , and enterprises to reduce logistics costs and provide effective recommendations. Abstract: On the background of economic integration, with the development of international trade, international logistics has also been got rapid growth. But there is still much room for the development of the whole logistics industry, logistics costs play an important in business spending and the country's GDP. This article clearly illustrated the constitute of the costs of logistics, briefly introduced the theory of logistic management and the factors which can effect the logistic costs of the company, and provided effective recommendation on how to reduce logistics costs. Keywords: logistics costs, enterprises, management Keywords: logistic costs, company, management I. Introduction Logistics cost management in modern logistics management occupies an important position , "Logistics is the economic dark continent ", " Logistics...
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...Logistics and Supply Chain Article Analysis In this paper the subject is to discuss, logistics, and the, strategic role within the supply chain. Discuss on how satisfying customer requirements for a product or service by the implications of poor logistics and supply chain management. In addition, review customer satisfaction requirements that influence logistics and have a direct impact on supply chain. Explain an example from personal experience of how inappropriate logistics planning led to customer dissatisfaction and how logistics can play a critical role in customer satisfaction. First, the role of logistics in supply chain is a process of managing the transfer of goods, services, and other sources from the place of manufacturing to the place of consumption. This is to fulfill the order and the demands of the customer. Logistics key role relating with inventory and the aggregation of information. Supply Chain management main objective is to establish a connection between the markets and manufacturing points and distribution of networks in an efficient matter. This will enable the goods and services provided to customers at a low-cost and quality level acceptable. Supply chain management depends on the logistics to be managed in an effective way. Logistics forms the system that ensures the delivery of the product in the entire supply pipeline (Excellence in Supply Management, n.d., p. 1). If the logistics have one stop logistics solutions, they can provide the...
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...terms, ‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation. During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies. The first argument is that they are not completely the same terms in operations because of the scope where utilized are different. Firstly, according to Murphy & Wood (2008), CSCMP states that the supply chain management includes all activities about planning and management, such...
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...Supply Chain Management Coursework Report By XYZ ID: Title: Supply Chain Management Contents Types of Logistic Performance Indicators 3 Cost Indicators 3 Quality Indicators 3 Importance of Developing Logistic Performance Indicators 4 References 8 Types of Logistic Performance Indicators Organisation for Economic Co-Operation and Development (2002, pp 34) has distributed the logistics performance indicators into two types. First type is cost indicators and second type is quality indicators. Cost Indicators These include the following costs * Costs incurred in transportation * Cost incurred on inventory * Cost incurred on sorting and packing * Costs incurred on packaging Quality Indicators These include the following * Goods & customer services knowledge * Availability of any goods * Order to delivery lead time and its accuracy * Response time for special orders * Ability in organising information * Ability to organise time * Ability to organise accuracy * Response time in the event of a mistake. Importance of Developing Logistic Performance Indicators The basic purpose of developing logistic performance indicators is to enable a company to evaluate the efficiency and sustainability of its logistics systems. In addition to this, a company can enable itself to monitor how successful it has been in achieving its logistics policies. Furthermore, such indicators help a company to explore...
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...Logistics has an important relationship to manufacturing, marketing, finance, and other areas of the organization * Logistics Interfaces with Operations/Manufacturing * Logistics Interfaces with Marketing * Logistics Interfaces with Other Areas Interfaces w/operations/manufacturing -Length of production runs Balance economies of long production runs against increased costs of high inventories. -Seasonal demand Acceptance of seasonal inventory to balance lead production times. -Supply-side interfaces Stocking adequate supplies to ensure uninterrupted production now a logistics function. -Protective packaging Principal purpose is to protect the product from damage. -Foreign & third party alternatives Some logistics functions are being outsourced. Logistics Interfaces with Marketing: The Marketing Mix – Four Ps * Price * Product * Promotion * Place -Manufacturing and marketing are probably the two most important internal, functional interfaces with logistics. -Other important interfaces now include finance and accounting. Logistics can have a major impact on return on assets and return on investment. Logistics costs reported by cost systems measure supply chain trade-offs and performance. Economic utilities and means that add value to a product or service in the SCM * Production * Form Utility (by assembling parts into finished...
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...A REVIEW ON LOGISITCS SECTOR AND EXPEDITORS INC. A REVIEW ON LOGISTICS INDUSTRY INTRODUCTION: LOGISTICS: The detailed coordination of a complex operation involving many people, facilities, or supplies and also the organization of moving, housing, and supplying troops and equipment. The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word, calculation, reason, speech, oration"). Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial management and distribution of supplies. The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.”The American Council of Logistics Management defines logistics as “the process of planning, implementing and controlling the efficient and effective flow, and storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.” SIGNIFICANCE OF LOGISTICS: Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective, forward and backward (reverse)...
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...What is supply chain management? [ A German paper factory receives its daily supply of 75 tons of recyclable paperas its raw material In the 1980s, the term Supply Chain Management (SCM) was developed[5] to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers being those that provide products, services and information that add value for customers and other stakeholders. The basic idea behind the SCM is that companies and corporations involve themselves in a supply chain by exchanging information regarding market fluctuations and production capabilities. If all relevant information is accessible to any relevant company, every company in the supply chain has the ability to help optimize the entire supply chain rather than sub optimize based on a local interest. This will lead to better planned overall production and distribution which can cut costs and give a more attractive final product leading to better sales and better overall results for the companies involved. Incorporating SCM successfully leads to a new kind of competition on the global market where competition is no longer of the company versus company form but rather takes on a supply chain versus supply chain form. Many electronics manufacturers ofGuangdong rely on supply of parts from numerous component shops in Guangzhou The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources...
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...Logistic management: * Managing the flow of material goods between people and places is known as logistics management. This type of process is prevalent in large organizations, especially those that interact with other companies to buy their supplies. Any company that requires the movement or transfer of material to complete a business task uses this management processes. * There are many fields that deal with logistics management. These include the areas of retail, manufacturing, and general warehousing. The logistic manager is responsible for coordinating the movement of material goods from one location to another. This typically requires the management of personnel and processes to deliver products in an efficient manner. * The movement of military troops is an example of a logistics management operation. This requires extensive coordination between both material goods and troops themselves. Military logistics is one of the most complicated management problems because it normally requires movement of material goods by land, air, and sea. * Human aid organizations are constantly working with logistics management processes. These non-profit organizations receive goods and financial aid from their contributors. These charitable funds are converted into food and supplies that can be used for aid to poor countries. This term originated in a military context, referring to how personnel acquire, transport and store supplies and equipment. In the business community...
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...GLOBAL LOGISTICS CASE STUDY COASTAL LOGISTICS INC. ESTABLISHING THIRD-PARTY (3PL) LOGISTICS SERVICES ‘’We declare that the material contained in this project is the end result of our own work and that due acknowledgement has been given in the bibliography to ALL sources, be they printed, electronic or personal. ‘’ Contents Introduction 2 Overview of the organisation 3 CLI’s 3PL service provision objectives 4 Main issues raised 5 1. The need for an effective and successful sales pitch 5 3. High spot-rate cost of boat leasing 6 4. Delivery route and shore base operating costs 6 5. Resource requirements for 3PL service 6 6. Establishment of a trusting and reliable partnership 7 Approaches to issues raised 8 1. “AS IS” process documentation and operation analysis 8 2. The Morgan City Benchmark Study 8 3. Cost comparison and utilization of long-term vs. spot-rate leases 9 4. 2 months, 24 hours activity log book 9 5. Drawing of support and expertise 9 6. Information sharing and in-depth study of operational and cost data .…………………………….………………………………………………….………………….…………….…………..10 Effectiveness of approach adopted 10 Recommendations 13 1. Provision of a consolidated logistics service 13 2. Delivery route and shore base operation costs 13 3. Establishment of a trusting, reliable partnership 14 4. Customer Service Audit 15 References 19 Introduction With increasing global competition and the streamlining of the supply chain management functions...
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...Nowadays, the global maritime logistics has developed more and more important role in the process of globalization. In the era of knowledge-driven economy, the external environment for global maritime logistics has changed a lot, which presents more and higher requirements for global maritime logistics management accordingly. The changes in global maritime logistics internal requirements and external environment certainly impel the adjustments in management philosophy, business strategy, institutional framework, human resource, maritime logistics culture and other aspects in maritime logistics management. Therefore, the study on maritime logistics management has both theoretical significance and practical significance. Cost reduction strategies have been frequently applied in the global maritime logistics. However, it has both advantages and disadvantages in global business. Therefore, it is very necessary to make the most use of cost reduction strategies according to the unique character of maritime logistics. With the guidance of modern management theory and management innovation theory, this paper discusses the cost reduction strategies and green strategies in global maritime logistics, and presents the idea that management is an objective requirement for maritime logistics development in the new situation. The paper summarizes the achievements and deficiencies in maritime logistics innovation of cost reduction strategies in the implementation of green strategies, mainly discusses...
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...Supply Chain Management (Logistic features and challenges) Outlines: * History of logistics * Introduction to Logistics and SCM * Business Logistics * DISTINGUISHED PROBLEMS OF LOGISTICS * 3 Logistical Challenges Every Growing Business Must Overcome * WalMart * Conclusion History of logistics:- Logistics has been playing a fundamental role in global development for almost 5,000 years now. Since the construction of the pyramids in ancient Egypt, logistics has made remarkable strides. Time and again, brilliant logistics solutions have formed the basis for the transition to a new historical and economic era. Examples of this fundamental progress include the invention of the sea-cargo container and the creation of novel service systems during the 20th century. Both are integral parts of globalization today. Around 2700 B.C.: Material handling technology in pyramid construction. Blocks of stone weighing several tons were transported and assembled at the construction site. To build the Great Pyramid of Giza, which is 146 meters high and weighs 6 million tons, the Egyptians needed sophisticated material transport equipment capable of moving the massive building blocks and putting them into place. Even today, we still cannot fully explain how this level of precision was achieved using the hoisting equipment and means of transport available around 2700 B.C. Around 300 B.C.: Revolutionary Greek rowing vessels – the new foundation...
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...Running head: Transportation and Logistic Chain Ahmed Lajili Ali UB.ID# 0860828 University of Bridgeport Mechanical Engineering Master of science Principle of Logistic ((MEEG 574)) Pr. David Burnell Abstract Purpose: to introduce the issue of the transportation and logistics chains. Finding: outlines how the individual papers affect debate on the nature and development of transportation in the supply chain. Originality: provides a summary of the perspectives studied within the transportation in the supply chain. 1. Introduction My research is on the transportation and logistics chains. Products are transported between different places in different stages within a supply chain. The transportation has a large impact on both responsiveness and efficiency. Faster transportation allows a supply chain to be more responsive but reduces its efficiency within a supply chain (Chopra & Meindle, 2007, p.53). Transportation has a significant impact, because it controls the speed of response and reply as stated in Newton's third law of every action there is always opposed an equal reaction. An example of Amazon is a company that sells products on the internet and uses UPS or FedEx, which is a transportation company that delivers products to customers. This is an example of transportation within a supply chain. In logistic today wrote article for Rosenau...
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...surprise you that logistics has such an important economic impact? Why or why not? I was not surprised at all, in my previous research I have learned that shipping industry has played a major role in our economy and that foreign trade accounted for 13% of US GPD. As of today about 90% of America’s overseas foreign trade is moved by ships and according to recent projections the foreign trade will be up to 35% of our GPD by 2020. Because some of us are working in supply chain management and may have a freight forwarding experience some of the materials presented in the textbook are old news. 1.2 Distinguish between possession, form, time, and place utility. Possession utility refers to the value or usefulness that comes from a customer being able to take possession of a product and can be influenced by the relevant payment terms. Form utility refers to a product’s being in a form that (1) can be used by the customer and (2) is of value to the customer. Time utility refers to having products available when they are needed by customers while place utility refers to having products available where they are needed by customers. 1.3 How does logistics contribute to time and place utility? Logistics contributes to time utility by recognizing that different products have different sensitivities to time. For example, a three-day late delivery of bananas likely has more serious consequences than a three-day late delivery of a box of pencils. As for place utility, logistics facilitates products...
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...Management Tool - Balanced Scorecard The idea of using Balance Scorecard like a tool for management effective development, firstly was introduced by Robert Kaplan and David Norton. They called their operation Balance Scorecard, for stressing balance of this system, which should be measured by system called Scorecard. The meaning of this concept – embodies managers’ view in reality and link strategy with operative activity, and cost factors. Main purpose of BSC – this system connected with business actions, which directed on customer satisfaction and all employees involved in it. BSC have differences from traditional management, which concentrated only on financial data, because this system orienting managers on adequate strategic development. BSC have some usage scenarios • Creating and using strategic plans in aim of strategic management • Using aims for evaluating departments and officials activities • Using aim for evaluating processes and functions of company We can assume that the aims of any company could be increasing profit and capitalization. It is clearly seen this is contradictory. For maintaining optimal balance between this aims, experts should find solution about as far as is necessary to increase profitability and capitalization, and fix this decision in two values. For reaching first aim of company decide to sell more and spend less. For second aim – invest money in new equipment debugging new production, it means...
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...of logistics in our global word. It will then move to the recent climate change and its impact on our world with particular reference to logistics and GHG emissions relationship. The write up will follow up with the EPA and other agencies reactions and discuss the impact and the changes in the logistics management by the companies around the world. SUPPLY CHAIN MANAGEMENT Supply Chain Management refers to the flows of processes though which the goods are moved from the customer order to the acquisition of raw materials, supply, production, and distribution of the goods to the relevant customer. It basically refers to the management of the activities for the collections of raw materials to the production at the factories to the distribution of these goods. The manager must coordinate with all of these pieces in a cordial manner for the effective management of the supply chain (Mentzer, 2001). LOGISTICS MANAGEMENT Logistics Management is widely known concept in the global world. All companies rely on the logistics for the efficient flow of the goods and services. For Example: Industrial manufactures rely heavily on these logistics for the transportation of the mass-produced items. At the same time, the consumer goods manufactures want their goods to be delivered to the outlets and warehouses before the customer calls for it. Therefore, Logistics management has now evolved into one of the most important links in the supply chain process (DHL, 2010). Logistics refers...
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